PRESIDENT MUBARAK: Today we have met with the President of the
United States, President George Bush, to affirm our common commitment
to seize this historic moment to advance the peace cause forward.

President Bush gave impetus to the peace process by his vision of
two states, Israel and Palestine, living in peace and security. This
vision means that, alongside the existing state of Israel, a new state
for the Palestinians will emerge.

We welcome the road map rising from this vision, and adopted by the
Quartet, especially since it has been accepted by both the Israeli and
Palestinian governments. We particularly express our appreciation for
President Bush's strong personal commitment for its full
implementation.

The road map provides for ending the occupation that began in 1967,
and resolving the Israeli-Palestinian conflict by 2005, through
fulfillment of all sides to their own obligations. Peace obligations
are built on the foundations of the Madrid Conference, the principles
of land for peace, and U.N. Security Council resolutions 242, 338, and
1397, and the initiative of Saudi Crown Prince Saud Abdallah Aziz,
which was unanimously endorsed by the Arab League Summit in Beirut.

We support the determination of the Palestinian Authority to
fulfill its responsibility to end violence and to maintain law and
order, as announced by Prime Minister Mahmoud Abbas. We will continue
to support the Palestinian Authority's efforts to uphold these
commitments in order to allow it to consolidate its authority in
democratic and accountable institutions. We will ensure that our
assistance to the Palestinians goes solely to the Palestinian
Authority, and we will continue to support efforts to improve the
quality of life of the Palestinian people.

We call on Israel to simultaneously fulfill its own
responsibilities to rebuild trust and restore normal Palestinian life,
and to carry out its other obligations under the road map, thus
promoting progress toward the President's vision.

We affirm our position again against terror and violence. We will
continue to fight the scourge of terrorism against humanity, and reject
the culture of extremism and violence in any form or shape, from
whatever source or place, regardless of justifications or motives,
being fully aware of their danger as a plague that threatens the peace
and stability of the whole world. We will use all the power of the law
to prevent support reaching illegal organizations, including terrorist
groups.

We reiterate our support for the Iraqi people as they rebuild their
country. We affirm our commitment once more, the independence and the
territorial integrity of Iraq under a government that represents the
Iraqi people and emanating from its free will; where Iraqi people
living in peace and harmony with its neighbors. And in this regard, we
consider U.N. Security Council Resolution 1483 as a useful means to
achieve these goals.

As the countries of this region continue their important endeavors
to promote political, economic and social reforms, we welcome the
initiative by the United States to open new economic opportunities for
all the people in the Middle East. We shall continue to work for a
Middle East that is free of strife and violence, living in harmony,
without the threat of terrorism or dangers of weapons of mass
destruction.

Thank you. (Applause.)

PRESIDENT BUSH: Thank you, Hosni. Very good job.

Mr. President, thank you for your hospitality and for the
invitation to this spectacular location.

We meet in Sinai at a moment of promise for the cause of peace in
the Middle East. We see the potential for unity against terror. We see
the potential for the birth of a new and Palestinian state. We see the
potential for broader peace among the peoples of this region.

Achieving these goals will require courage and moral vision on
every side, from every leader. America is committed, and I am
committed, to helping all the parties to reach the hard and heroic
decisions that will lead to peace.

I want to thank Crown Prince Abdallah, King Hamad, King Abdullah,
Prime Minister Abbas for joining us today. I particularly want to thank
President Mubarak. The United States values its strong ties with Egypt.
By hosting this gathering, President Mubarak is acting in Egypt's best
traditions. His predecessor, Anwar Sadat, was a leader for peace who
had the vision to see opportunities and the bold heart to seize them.
In this spirit, we meet today.

Last year on June 24th, I put forth a proposal for two states,
Israel and Palestine, living side-by-side in peace. I called on Israel
to respect the rights of Palestinians, including the right to live in
dignity in a free and peaceful Palestine. I urged the Palestinian
people to embrace new leaders who stand for reform, democracy and for
fighting terror.

I also said that progress toward peace would require the active
commitment and support of neighboring states. And today I'm pleased to
stand with leaders of the Arab world, who are committed to these
principles.

All progress towards peace requires the rejection of terror. The
leaders here today have declared their firm rejection of terror,
regardless of its justifications or motives. They've also committed to
practical actions to use all means to cut off assistance, including
arms and financing to any terror group, and to aid the Palestinian
Authority in their own fight against terror.

Terror threatens my nation. Terror threatens Arab states. Terror
threatens the state of Israel. Terror threatens the emergence of a
Palestinian state. Terror must be opposed and it must be defeated.

Tomorrow, I will go to Aqaba for a meeting with Prime Minister
Sharon, Prime Minister Abbas, to discuss the responsibilities of the
Israelis and the Palestinians. And if all sides fulfill their
obligations, we can make steady progress on the road toward Palestinian
statehood, a secure Israel, and a just and comprehensive peace.

We seek true peace; not just a pause between more wars and
intifadas, but a permanent reconciliation among the peoples of the
Middle East.

In our meeting today we also discussed the future of Iraq. I
reaffirmed America's commitment to helping the Iraqi people achieve
freedom and democracy in a unified country, its borders intact; a
country free of weapons of mass destruction, and at peace with its
neighbors and the world.

America is fully committed to restoring security to Iraqi cities
and helping the Iraqi people rebuild their nation, after decades of
cruel and corrupt dictatorship. I welcome the support of all the
nations represented here for these important goals, and hope they will
contribute to helping the good people of Iraq.

There's a hopeful direction to recent events in the Middle East. In
Iraq, a tyrant in support of terror has been removed. Reform is taking
hold in many societies that are eager to join in the progress and
prosperity of our times. I urge nations throughout the region open
their markets, to seek broader trade in the world, and to join us in
creating a U.S.-Middle East free trade area within a decade.

The leaders here today recognize the importance of representative,
democratic institutions to fulfilling the hopes of the Iraqi and
Palestinian people. And free institutions are critical to the hopes of
people everywhere. Allowing peaceful avenues for the expression of
different views and broader political participation will unleash the
talents of each nation. All Middle East countries that travel this
challenging path will have the support and the friendship of the United
States.

In this meeting we've made progress on a broad agenda, and we're
determined to keep moving forward. I thank all the leaders here today,
and may God bless our important work.